What is a Chapter 7 Bankruptcy Trustees and Why Are They After My Stuff?
If you have done any sort of research into bankruptcy, you’ve likely seen one word pop up over and over again:
Trustee
But what exactly is a trustee? Why should you care about them, dear reader? Join us for this week’s blog as we unpack the “trustee” and finally answer all of your most burning questions.
First off, what exactly is a trustee? A trustee is an administrator who has been appointed by the United States Trustee Program in order to oversee bankruptcy cases across the country. Their specific goals vary with what chapter bankruptcy they are overseeing.
For a chapter 7 bankruptcy, the Trustee’s goal is to oversee the bankruptcy estate. The trustee is technically the owner of all assets that are placed into the estate when someone files for chapter 7 bankruptcy. The trustee will then be expected to liquidate any assets that are not protected, and use the proceeds to pay creditors. The trustee will also check the debtor’s financial records to ensure that everything is in order. In a chapter 13 trustees still have similar goals but instead of liquidating assets they accept payments from the debtor and distribute them in order of priority to their creditors. In a Chapter 13, the property remains the debtor’s until the court orders otherwise. The trustee must also monitor the cases to make sure debtors are meeting their obligations.
It’s important to note that the trustee does not represent you. At the end of the day, their goal is to oversee the bankruptcy and make sure creditors get paid where they can in a neutral manner.
However, if you do want an attorney that is 100% on your side, then look no further than Minnesota’s nicest bankruptcy attorneys.
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LifeBack Law is here to guide you through the bankruptcy process with compassion, kindness, and empathy. If you have been considering bankruptcy, head to
www.lifebacklaw.com and schedule a free consultation today.https://www.youtube.com/watch?v=bo9HTfoEiZM
